Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
raleighwrights
New Member

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Our adopted son was born in April of 2018 and has lived in our house since then.  No one else can claim him as a dependent and no one has lived in our house to help care for him.  Our refund was a little over $5,000 before I input his ATIN but dropped to around $3,500 once I entered it.  I don't understand why.

Thank you in advance for your time and help.

1 Best answer

Accepted Solutions
Vanessa
Level 3

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Since your son has an ITIN instead of a social security number he is not eligible for certain credits that he would be if he had a SSN that is valid for employment.  One of the credits that is only available with a SSN is the Child Tax Credit. If you are now getting $500, this is because he is eligible for the $500 Other Dependent Credit, but not the $2,000 Child Tax Credit.  They both show on the same line. This is why your refund dropped by $1,500.

Prior to entering the ITIN, TurboTax is calculating your credits and deductions based on the assumption that he has a valid SSN once that changes, a recalculation is made to adjust the credits appropriately.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

7 Replies
Vanessa
Level 3

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Did he have health insurance all year?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Vanessa
Level 3

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Were you getting the Child Tax Credit prior to entering his ITIN?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
raleighwrights
New Member

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Yes, he had health insurance all year.  Medicaid for the month of April and then he was added to our insurance as of May 1.  I don't think we were getting the Child Tax Credit prior to entering his ATIN.
Vanessa
Level 3

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

What is on lines 7-12 of your 1040?  
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
raleighwrights
New Member

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

We're taking the standard deduction and line 12 shows a Child Tax Credit of $500.  I am still working our our return, though; I've not yet entered any of our 2018 charitable giving or adoption expenses for 2017.
Vanessa
Level 3

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Since your son has an ITIN instead of a social security number he is not eligible for certain credits that he would be if he had a SSN that is valid for employment.  One of the credits that is only available with a SSN is the Child Tax Credit. If you are now getting $500, this is because he is eligible for the $500 Other Dependent Credit, but not the $2,000 Child Tax Credit.  They both show on the same line. This is why your refund dropped by $1,500.

Prior to entering the ITIN, TurboTax is calculating your credits and deductions based on the assumption that he has a valid SSN once that changes, a recalculation is made to adjust the credits appropriately.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

raleighwrights
New Member

My son is adopted and the adoption is not final. My refund decreased dramatically after inputting his ATIN. Why?

Thank you!  You have been so helpful!
Dynamic AdsDynamic Ads
v
Privacy Settings